WD-40 Company (WDFC) Earnings Call Transcript & Summary

Good day, and welcome to WD-40 Company's Third Quarter Fiscal Year 2026 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] I will now turn the call over to Wendy Kelley, Vice President, Stakeholder and Investor Engagement. Please go ahead.

Thank you, and good afternoon. Thank you for joining us today. On our call today are WD-40 Company's President and Chief Executive Officer, Steve Brass; and Vice President and Chief Financial Officer, Sara Hyzer. In addition to today's discussion, we encourage investors to review our earnings presentation, press release and Form 10-Q for the period ending May 31, 2026, available on our Investor Relations website at investor.wd40company.com. A replay and transcript of today's call will also be posted shortly. We will discuss certain non-GAAP measures today. Reconciliations to GAAP results are available in our SEC filings and earnings materials. Today's call also includes forward-looking statements. Actual results may differ materially. Please refer to the risk factors in our SEC filings for more information. Finally, please note that all information presented is current as of July 9, 2026, and we undertake no obligation to update forward-looking statements. With that, I'll turn the call over to Steve.

Thanks, Wendy, and thanks to everyone for joining us today. I'll begin with an overview of our third quarter performance and progress against select areas of our Four-by-Four Strategic Framework. Sara will then review our financial results and outlook, and we'll conclude with your questions. Third quarter consolidated net sales increased 24% year-over-year to $195.1 million. Maintenance products, which represented 97% of total net sales increased 26% to $189.7 million and were up 22% on a constant currency basis, exceeding our long-term growth expectations and setting a new record for the company. Sales of maintenance products in our direct markets increased 28% year-over-year, while sales through our marketing and distributor markets increased 18%. We'll discuss the drivers of this performance in a moment. Gross margin increased 40 basis points year-over-year to 56.6%. We're encouraged by this momentum and remain focused on the levers within our control. Although we expect gross margin to experience some temporary pressure from external cost factors in the coming months, we are confident that the actions we've taken position us well for recovery thereafter. We will vigorously defend our gross margins and may need to take further action in fiscal year 2027 as required. Sara will provide additional perspective on our outlook in a moment. Now let's review third quarter sales results by trade bloc. Unless otherwise noted, I'll discuss net sales on a reported basis compared to the third quarter of last fiscal year. Sales in the Americas increased 29% year-over-year to $101.2 million, driven by a 31% increase in maintenance products to $98.3 million. This growth was driven primarily by increased sales of WD-40 Multi-Use Products in the U.S. and Latin America, where sales increased $17.2 million and $2.6 million, respectively. Strong performance of WD-40 Multi-Use product in the U.S. was driven by several factors, including expanded distribution, robust e-commerce sales and strong promotional activity, including a high-impact promotional campaign, featuring a limited edition can collaboration with Disney Entertainment and the Home Depot. In Latin America, sales increased across Brazil and Mexico, supported by higher sales volume in Brazil and a combination of sales growth and favorable foreign currency translation in Mexico. WD-40 Specialist sales increased by 22%, driven by higher U.S. volumes, reflecting new distribution gains, strong placement with large retailers and growth in online sales. Homecare and cleaning product sales declined 9%, reflecting our strategic focus on higher-margin maintenance products. Sara will give an update on our U.S. homecare and cleaning business later in the call. Looking ahead, we expect low double-digit growth in maintenance products in the Americas for fiscal year 2026. Turning to EMEA. Sales increased 17% year-over-year to $66.6 million, reflecting higher sales volume in both direct and distributor markets as well as favorable foreign currency exchange rates. On a constant currency basis, sales were up 10%. In our EMEA direct markets, sales increased by $6.6 million, driven by double-digit growth in maintenance products across key markets including Iberia and DACH. In these regions, sales and maintenance products rose by $2.2 million and $1.5 million, respectively, supported by strong commercial execution, promotional activity and merchandising. In our distributor markets, sales increased by $4.4 million, reflecting a strong rebound after several softer quarters and positive impact of completed strategic distribution changes. Growth was driven by higher sales volumes across key markets, including Saudi Arabia and the United Arab Emirates, supported by the timing of customer orders and increased inventory build within the region. In India, sales increased $1.6 million, primarily due to favorable order timing and foreign currency impacts. Sales in the EMEA region also benefited from some advanced buying as customers proactively manage inventory levels and the uncertainty around product availability, following geopolitical developments in the Middle East. We also experienced some advanced buying ahead of price increases, which became effective in early Q4. As a result of both of these factors, a portion of fourth quarter demand shifted into the third quarter. WD-40 Specialist sales increased 31%, driven by growth across most of our direct and distributor markets. Growth was led by France and Iberia by strong marketing programs and new product introductions supported higher sales. As a reminder, the divestiture of the U.K. homecare and cleaning portfolio in fiscal 2025 reduced third quarter sales by $1.1 million. Despite ongoing uncertainty in the Middle East, we expect maintenance product sales in EMEA to increase by low to mid-single digits in constant currency and high single digits in reported currency in fiscal year 2026. In Asia Pacific, sales increased 24% year-over-year to $27.3 million and were up 18% on a constant currency basis. Growth was broad-based across the region, driven primarily by China and Asia distributor markets, which increased $3 million and $1.4 million, respectively. In China, growth was driven by higher sales volumes, supported by promotional and marketing programs, including online influencers and expanding distribution across online retail and industrial channels. Sales also benefited from advanced buying ahead of planned price increases later in the year, which shifted a portion of expected fourth quarter demand into the third quarter. In our Asia distributor market, sales increased driven by promotional programs, particularly in the Philippines, Indonesia and Malaysia. WD-40 Specialist sales increased $1 million or 32%, driven by growth across the region with the strongest gains in China where higher volumes were supported by promotional and marketing programs and expanded distribution. We remain encouraged by regional momentum and expect high single-digit to double-digit growth in maintenance products in Asia Pacific for fiscal year 2026. Now let's talk about our Must-Win Battles, a core element of our strategy to accelerate revenue growth in maintenance products. Starting with Must-Win Battle, #1 lead geographic expansion, year-to-date sales of WD-40 Multi-Use Product increased 13% to $398 million, driven by solid performance across all 3 trade blocs. We are seeing strong progress across key markets with year-to-date growth of 20% in the U.S., 21% in China and 27% in Iberia, we continue to execute from a proven playbook, expanding distribution, sampling programs to build awareness with end users across 176 countries and territories and 62 trade channels. We estimate the attainable market to WD-40 Multi-Use Product to be approximately $1.9 billion. For fiscal year '25 sales of $478 million, we believe there remains a significant long-term growth opportunity. Next is Must-Win Battle #2, accelerating premiumization. Year-to-date sales of WD-40 Smart Straw and EZ Reach when combined, increased 19% and now represent approximately 50% of WD-40 Multi-Use Product sales. These premium formats strengthen brand loyalty, support gross margin expansion and provide meaningful runway for continued growth. We continue to target annual growth of more than 10% in premiumized products. Our third Must-Win Battle is driving WD-40 Specialist growth. Year-to-date sales increased 22% to $72.9 million. We estimate the attainable market for WD-40 Specialist at approximately $665 million. The fiscal year '25 sales of $82 million were still in the very early stages of capturing a significant growth opportunity. Today, 90% of our WD-40 Specialist sales come from just 10 markets, highlighting a significant opportunity to expand through geographic growth and product innovation. In the third quarter, we launched our first bio-based lubricant across several European markets. Whilst it's still early, we are very encouraged by the initial results and look forward to rolling out the product across additional markets in the coming quarters. We continue to target annual growth of more than 10% on WD-40 specialists as we expand our portfolio of purpose-built maintenance solutions. Our fourth Must-Win Battle is to Turbo-Charge Digital Commerce. Year-to-date e-commerce sales increased 22%, led by the United States and China. E-commerce pure-play remained one of our fastest-growing channels. Across digital, we're strengthening execution on key platforms. Our social media and video channels are driving much of our digital reach, helping us connect with both new and existing end users in more engaging ways. As a result, for reaching and engaging more end users than ever before, digital commerce continues to support each of our Must-Win Battles by improving access to our products and increasing brand visibility and relevance. We'll now move to our strategic enablers, which support operational excellence across the business. Zig Ziglar once said, "You don't build a business, you build people and then the people build the business." That philosophy is core to WD-40 Company and is the foundation of our people-first mindset. Our people are remarkably resilient, agile and innovative. Over the past 5 years, they have navigated a series of external challenges from the global pandemic to geopolitical uncertainty while strengthening cost discipline, implementing new systems, enhancing how we serve customers and leveraging our globally decentralized supply chain network all in the face of significant uncertainty. Last month, we announced a planned leadership transition to build on the strong foundation we have in place. As part of this transition, we introduced new roles to strengthen alignment and accelerate strategy execution, ensuring we have the right structure and leadership in place to support continued growth. These new roles include Chief Strategy and Innovation Officer and Chief Brand and Marketing Officer, and will be filled by experienced WD-40 company leaders transitioning from within the company. These newly created roles are designed to enhance collaboration, accelerate innovation and proactively harness AI and digital technologies to drive growth and advance the company's long-term strategy. We also announced that Sara Hyzer will transition to President of our Americas division, reflecting our commitment to developing leaders from within. Sara will continue to serve in her current role during the transition until a successor is named. These changes are designed to support continued growth and position the business for long-term success. With that, I'll now turn the call over to Sara.

Thanks, Steve. I appreciate the opportunity to take on my new role and excited about what lies ahead for our Americas business. In the meantime, I remain fully focused on my current responsibilities and on delivering value for our stakeholders. Today, I will review our third quarter performance against our business model, introduce enhancements we are making to further strengthen it, provide an update on the divestiture of our Americas homecare and cleaning business and discuss our fiscal year 2026 guidance and key assumptions. We were encouraged by our third quarter performance with net sales up 24% and operating income growing 47%, reflecting the benefits of scale in our business. The difference between those growth rates highlights the leverage in our business model as higher revenue flowed through to profitability. As expected, results strengthened as the year progressed, with improvement across both the top and bottom line. Turning to our business model, which expresses gross margin, cost of doing business and adjusted EBITDA as a percentage of revenue. This quarter, we are seeing the benefits of higher revenue and scale reflected across the model. Starting with gross margin, performance remains strong. Third quarter gross margin was 56.6%, up 40 basis points year-over-year. This increase was driven by 80 basis points from lower aerosol cans and fill fees, as well as 60 basis points from favorable sales mix and other miscellaneous mix, partially offset by 60 basis points of increases in other input costs. Third quarter gross margin performed as expected despite external cost pressures, driven by recent geopolitical developments, reflecting the benefit of higher inventory levels entering the quarter. We expect those costs to move through our production and inventory cycles over the next several months. In response, we have already implemented pricing and cost-saving initiatives across many regions, positioning the business to realize the benefits of these actions with most of the impact expected in fiscal year 2027. As these actions take hold and the external environment stabilizes, we anticipate gross margin improvement over the course of fiscal year 2027. While the exact timing and pace of that recovery are difficult to forecast, we believe we are well positioned to navigate the environment, strengthen profitability and drive continued progress. Turning to cost of doing business, which represents operating expenses adjusted for certain noncash items. It decreased to 34% of net sales from 38% last year, reflecting operating leverage from higher revenue and scale. Advertising and promotional investment increased to 6.1% of net sales from 5.8% last year, driven primarily by higher promotional activity in the U.S. We still anticipate being around 6% of net sales for the full year, which is in line with our guidance. Finally, adjusted EBITDA margin increased to 23% from 20% last year, reflecting operating leverage from higher revenue and scale. Now I'd like to provide an update on the Homecare and Cleaning divestiture. Last fiscal year, we announced our intent to sell these brands in the Americas and the U.K. We successfully completed the divestiture of the U.K. Homecare and Cleaning brands in August of 2025. After extensive engagement with potential buyers, it became clear that the current macro environment was not conducive to divesting of these brands as a bundle. As a result, we are no longer actively marketing these brands for the foreseeable future, and have reclassified these assets as held for use. We continue to view these homecare and cleaning brands as noncore. We will remain open and opportunistic and are evaluating each brand individually should the right opportunity present itself. For the time being, we will manage these as harvest brands, expecting gradual top line decline while continuing to generate attractive returns. As a reminder, the Americas household brands combined represent $12 million in annual sales, less than 2% of our global revenue. Consistent with accounting guidance, we resumed amortization and recorded $1.3 million in expense during the quarter related to prior periods when these assets were classified as held for sale. Given the onetime nature of this catch-up expense, we are including this as a non-GAAP adjustment to help investors better evaluate the underlying performance of the business. Additionally, this decision will impact our reporting in 2 other ways. First, we issued fiscal year 2026 guidance on a pro forma basis, excluding the home care and cleaning businesses to provide clear visibility into the performance of the core business. With the reclassification to held for use, our fiscal year 2026 guidance now includes associated sales and earnings from these assets, which favorably impacts elements of our outlook. I'll discuss in more detail when I walk through our updated guidance for the year. Second, our decision to retain the homecare and cleaning business prompted us to reassess and sunset our long-standing 55/30/25 business model. As part of this reassessment, we developed our new enduring business model, which provides a disciplined framework for how we manage the business and create long-term value. It is anchored in 4 key drivers. Maintenance product sales growth targeted at mid- to high single digits, gross margin targeted above 55%. Adjusted EBITDA growing faster than net sales and an asset-light model that requires minimal capital investment. Together, these drivers support strong outcomes, including returns on invested capital above 25%. Strong free cash flow conversion and a balanced capital allocation approach that prioritizes organic growth, dividends and share repurchases. The enduring business model was designed to drive leverage and long-term returns for stockholders that are reflecting our strength as the perpetual compounder. We will continue to report under the 55/30/25 model through fiscal year 2026 and transition to the enduring business model in fiscal year 2027 to better align our metrics with our long-term strategy. Turning now to other key measures of financial performance. Let's review operating income, net income and earnings per share for the third quarter. Operating income increased 47% to $40.3 million with foreign currency being a tailwind for us. On a constant currency basis, operating income increased by 42%, primarily driven by higher sales and improved gross margin, partially offset by increased operating expenses. Excluding amortization expense related to the reclassification of our homecare and cleaning brands, non-GAAP net income was $31.5 million, up 50% to prior year. On a non-GAAP basis, diluted earnings per common share were $2.33, up from $1.54 in the prior year quarter. Turning from how we measure performance to how we deploy capital. Our balance sheet remains strong and supports a disciplined approach to investing in organic growth and returning value to stockholders. Our capital allocation strategy remains a consistent foundation. On June 15, 2026, our Board of Directors authorized a new share repurchase program of up to $100 million. The program has no expiration date and the timing and amount of repurchases will be determined based on market conditions and other factors. So let's turn to fiscal year 2026 guidance. As a reminder, our fiscal year 2026 guidance was originally provided on a pro forma basis, excluding the Americas homecare and cleaning business that was classified as assets held for sale. Following the reclassification of these assets, to held for use. The business has been incorporated back into our guidance, and I will walk through the specific impact to our guidance to help bridge those changes. We have also narrowed our guidance ranges based on our year-to-date performance and outlook. In addition, our guidance is provided on a non-GAAP basis and excludes the onetime amortization catch-up expense of $1.3 million recorded in the third quarter. For fiscal year 2026, we now expect net sales in constant currency to be between $652 million and $667 million, representing growth of 6% to 9%, compared to pro forma fiscal year 2025 net sales of $614 million. This outlook includes approximately $12 million in net sales from assets recently reclassified as held for use. It also reflects a narrower guidance range, providing a more refined view of our expected performance for the remaining part of the fiscal year. Based on current exchange rates, we expect reported net sales to be between $675 million and $690 million, representing growth of 10% to 12% compared to pro forma fiscal 2025 net sales. Gross margin is now expected to be between 54.5% and 55.5%. This revised outlook incorporates a 40 basis point adjustment due to the reclassification of homecare and cleaning brands, along with an additional 60 basis points from higher-than-expected cost increases. The company has implemented pricing actions and cost-saving initiatives with the majority of the expected benefit of anticipated in fiscal year 2027. Advertising and promotion investment remains projected to be approximately 6% of net sales. We now expect non-GAAP operating income to be between $107 million and $113 million, representing growth of 5% to 11% compared to pro forma fiscal 2025 results. This outlook includes approximately $2.9 million in operating income related to those assets recently reclassified as held for use. Our provision for income tax is now expected to be around 22.5%. Finally, we expect non-GAAP diluted earnings per share to be between $6.05 and $6.35 based on an estimated 13.5 million weighted average shares outstanding. This outlook includes approximately $0.17 per share related to the assets recently reclassified as held for use and represents growth of 6% to 11% compared to pro forma fiscal 2025 results. Our guidance reflects a euro to U.S. dollar exchange rate assumption of approximately $1.17 in the fourth quarter. Actual results may vary as conditions evolve. That completes the financial overview. Now I would like to turn the call back to Steve.

Thank you, Sara. In summary, what did you hear from us today? You heard that we delivered 24% net sales growth and 47% operating income growth, demonstrating the operating leverage inherent in our business model. You heard that third quarter sales benefited from advanced buying due to market uncertainty as well as planned price increases later in the year, which shifted a portion of expected fourth quarter demand into the third quarter. You heard that our must-win battles continue to perform well with solid double-digit year-to-date growth in geographic expansion, WD-40 Specialist, premiumized products and e-commerce. You heard that our People First mindset remains central to how we operate, supported by leadership changes that strengthen alignment and support long-term growth. You heard gross margin was strong at 56.6%, up 40 basis points from last year, while higher input costs are expected to pressure margins in the near term, pricing and cost optimization actions are underway, and we expect margin recovery of those benefits are realized. We will vigorously defend our gross margins and may need to take further action in FY '27 as required. You heard that we decided to no longer actively market our Americas homecare and cleaning brands and have reclassified these assets as held for use. You heard that we're introducing our enduring business model framework designed to drive leverage and long-term returns to stockholders better reflecting our strength as a perpetual compounder. And you heard that we're updating our guidance to incorporate the homecare and cleaning business into our outlook and to narrow our guidance ranges based on our year-to-date performance and outlook. Thank you for joining our call today. We'd now be pleased to answer your questions.

[Operator Instructions] Your first question comes from the line of Aaron Reed from Northcoast Research.

Congratulations on that front. I guess my first question really is, I was wondering if you could speak to how sustainable do you think margins being above 55% are? It seems like something that obviously you're shooting towards that or kind of want your 2 cents on what's the sustainability? Or how would you kind of speak to that?

Aaron, this is Sara. Thanks for that question. We had indicated at the end of Q2 that we believed our margins were going to hold in the third quarter, and they did hold, but that we did anticipate some cost increases as we were -- as a result of the disruption in the Middle East. And so those cost increases did happen in the months subsequent to Q2. We had enough inventory on the balance sheet to sustain our margin in the third quarter, but we do anticipate those cost increases to begin to flow through in the fourth quarter. That said, we did also implement price increases, as Steve mentioned, and those price increases will begin to take effect really starting in fiscal year FY '27. So we'll start to mitigate some of those cost increases that we anticipate to see our cost increases impacting our P&L that we anticipate in the fourth quarter. So those actions have already been taken. We've also taken some cost reduction actions as well to help mitigate the exposure in the fourth quarter. With that said, we're really pleased with where the full year is going to land between 54.5% and 55.5%. Considering what's happening around the world, we feel really good about where the year is landing.

Okay. Great. And I guess one other question is involved that. When you rolled out the price increases, and I'm not sure if the price of oil was a component to it. I know it's a small piece of that. But did oil return to $70 faster than you anticipated? Or when you're modeling that, what do you expect in terms of input cost normalization?

Yes. So when we look at the rates that the cost increases went up, so if we look at the kind of the range of the $95 to $115, that was indicating about a 40% increase. The reality is we did experience decoupling. So the input cost of the specialty chemicals and the base oils that we buy did go up in excess of the 40%. So in some cases, it was 50%. In some cases, it was double. So we saw really significant price increases in those 3 months. The good news is in June, we have started to see some of that pull back. So the reality is the pace of the -- while we've seen the spot pricing on the commodity pricing kind of come back down within that $70 range, you're not seeing the pacing of the cost decreases on the actual input costs come down at the same rate. And we are seeing them pull back about 20% to 25% in the month of June. And we do anticipate it to be a slower step down. It's just the nature of the environment, the costs go up pretty fast and then there's a slower pace for it to step down. That said, assuming things don't escalate further in the Middle East, we do anticipate that pacing back down to the levels that we saw pre-war.

Your next question comes from the line of Michael Baker from D.A. Davidson.

All right. So I guess just to follow up on that question. Can you just talk about your -- the fourth quarter outlook, sort of implied guidance, if you will? Just the math, if you do the math on the full year guidance plus what you've earned year-to-date, it does seem like the sales are in line with the consensus, earnings a little bit lower. But I guess my question, too, is, is your fourth quarter outlook now better, worse or the same as it was 3 months ago. My assumption is same on the top line, maybe a little bit worse on the margins because of how the oil is playing out. But I guess, just how are you looking at the fourth quarter now versus where you thought it 3 months ago?

Mike, it's Sara, again. So the fourth quarter outlook changed a little bit in the sense that there is some phasing, right, that we saw between Q3 and Q4. So there was a little bit more that was pulled into the third quarter than it was in the fourth quarter. But when you look at the 2 quarters combined, we are landing in that mid- to higher end of our guidance range. And so it was really more timing that impacted ultimately the fourth quarter outlook. We feel good about the fourth quarter. It's going to actually be the second strongest quarter of the year. We knew going into the second half of the year that the majority of the growth this year was going to be in the back half. And the phasing of that just really -- the timing of that fell more in the third quarter than it did into the fourth quarter. You did mention on the gross margin, there is a little bit more of a pullback than what we had anticipated coming out of Q2, and that was just -- it was really hard to anticipate the cost increases. But to be able to hold guidance within 50 to 60 basis points as to where we were a few months ago, considering the environment, I think we feel really good about that. And again, always a reminder that whatever pullback we get on those cost increases, there is an offset to that with our rewards program that helps protects the bottom line. And so really, when we look at the full year, we are increasing our bottom line guidance, both on operating income and EPS as a result of being able to reduce some of our discretionary spending in the fourth quarter to help protect the bottom line.

Okay. So that was -- just a follow up on that as my second question. Just because, frankly, there's a lot of sort of moving parts in question, tough to do the math. But what you're saying is your guidance is up not just on now, including the HCCP Americas business, but you're increasing your guidance on that, but also some things within the business, i.e., cost savings as you just mentioned?

Yes. So I'll give an example, Michael, if I look at the operating income of where we were in Q2, we guided to $103 million to $110 million. And if you add in the $2.9 million, that would have put us at $105.9 million to $112.9 million and we're guiding to $107 million to $113 million. So we are upping our bottom end by about $1.1 million, and we're pretty tight on the top end. So the narrowing that we've mentioned is really raising the bottom end of both our top end and our -- sorry, top line revenue and our operating income and EPS. In all 3 scenarios, the bottom is coming up.

Your next question comes from the line of David Shakno from William Blair & Company.

This is David Shakno on for John Anderson. Two quick questions for me. First, you announced about a month ago or so, a promotion, a King of the Hill promotion at a large retailer. Just wanted to understand any early reads there and just how the performance there has been?

Sure. King of the Hill, yes, the promotion in partnership with Disney and with the Home Depot, is one of the largest promotions we've ever run in our history. If you walk into our Home Depot store, you're going to see some beautiful displays of WD-40 there. It's been in the market for about a month. It's got a few months to go. We're in the process of ramping up our marketing activity. And so I believe in the month of July, we're going to be hitting about 80 million consumers across the U.S. in terms of targeting. And so yes, it's really driving really strong incremental sales. It's proving to be after 1 month, about 75% incremental and so there's very little cannibalization from the promotion. And so yes, we're very pleased. It's a major promotion for us. One of many promotions, right? It's not the only act we've got in the U.S. There's lots of things going on in the U.S. We've coupled with strong distribution gains. We've got very strong WD-40 Specialist growth, very strong e-commerce growth. But this -- and a couple of other meaningful promotions are really helping drive the results you've got in the U.S.

Got it. And then just wanted to follow up on -- I know you talked about pricing a little bit earlier, but just wanted to understand more if you could help us with the magnitude at all of pricing? And also any -- I realize most of the impact is going to be in fiscal '27. So it's probably hard to see any kind of elasticities there. But I wanted to understand if there's been any pushback from retailers so far, just what the response has been in general?

Sure. And so the price increases we've executed are across Asia Pacific and Europe. If you recall or maybe you don't, we actually launched price increases in the first quarter in the U.S. earlier in the fiscal year. And so we will review the situation in the U.S. next year as well. But these price increases have been pretty well implemented across most of Europe and Asia Pacific, where the bulk of kind of the impact has been felt. Mid- to high single digits in terms of the scale of the increases, a little bit more on our bulk products, which have felt a little bit more cost pressure. And they were implemented between June and July, some of that stretching perhaps into August, but the main impact of the price increases and so going in, you'll see that coming in the back half of Q4 and into Q1, you'll feel the full benefit. We did have a little bit of -- as well as some disruption, right? We talked about a pull forward. That was probably about a $3 million amount of business that was pulled forward globally between countries like India, which were concerned about security of supply and they just place larger more inventory on hand. And in places like China, where we had a little bit of a kind of advanced buy-in as well as some of our European countries. So about $3 million in magnitude for the whole impact.

Your next question comes from the line of Daniel Rizzo from Jefferies.

Just a couple of things. One, I'm sorry, did you say it's a 20 -- roughly 20% contribution from homecare for the year -- the U.S. homecare for a year now. Is that -- that's how we kind of think about it going forward?

Yes, that's pretty close. If you look at the $12 million on the top line and then the operating income, Daniel, is just shy of $3 million.